Beijing Enterprises sells euro green bond

Beijing Enterprises has raised €500m from a five-year guaranteed green bond offering on the back of a strong bid from domestic investors.

HONG KONG, Sept 18 (IFR) - Beijing Enterprises has raised €500m from a five-year guaranteed green bond offering on the back of a strong bid from domestic investors.

The 1% unsecured Reg S bonds priced at 99.637 to yield 1.075%, or mid-swaps plus 150bp, inside initial guidance of plus 190bp area.

Final orders were over €1.6bn from 49 accounts, including €1.35bn from leads.

"There was decent interest from Chinese banks although the euro, which was specifically requested by the borrower, is a less preferred currency than US dollars," a lead said.

Beijing Enterprises' euro-denominated 2022s were seen at mid-swaps plus 120bp, so the pricing for the new bonds looks fair considering the three-year extension, the lead said.

China National Chemical Corp (ChemChina) also priced a €500m four-year bond at mid-swaps plus 168bp last week. The notes, however, are rated a notch lower at Baa2 by Moody's compared with Beijing Enterprises' Baa1.

Beijing Enterprises' notes were trading 3bp tighter in secondary on their first trading day on Friday.

The bonds are the state-controlled beer-to-energy conglomerate's third euro-denominated issue. The company previously visited the international bond market to print euro bonds in April 2015 with a five-year €500m issue and in April 2017 when it raised €800m with its 2022s.

Although demand was driven by local investors, the company's history in euros helped gain support from Europe, said the banker on the deal.

Asia took 82% of the deal and the rest went to EMEA.

(This story will appear in the September 19 issue of IFR Magazine)

((Jihye.Hwang@refinitiv.com; +852 2843 1679; Reuters Messaging: Jihye.Hwang@thomsonreuters.com@reuters.net))

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